Market update: Chinese trade data lifts mining stocks – 08.05.2013

Source: Henderson Global Investors

US equities continued to climb yesterday (S&P 500 +0.5%), with the Dow Jones (+0.6%) closing above 15,000 – a new record close for the index. German industrial data was a boost to sentiment: better-than-expected factory orders (+2.2% in March month-on-month) suggest that Europe’s largest economy may have put its recent soft patch behind it. A number of US companies announced earnings that beat expectations; among them fashion brand Fossil, satellite TV provider DirecTV, and gas driller EOG Resources. So far, around 69% of S&P 500 companies have beaten earnings estimates – although revenues have been somewhat disappointing.

Stronger than anticipated Chinese trade data has seen the FTSE Eurofirst 300 Index rise 0.1% this morning, led by the mining sector. China’s exports climbed 14.7% in April, while imports surged 16.8%, generating a significant trade surplus of around US18bn for the Chinese economy. The FTSE 100 is flat at the time of writing, however, as UK news has been less encouraging. According to the British Retail Consortium, retailers suffered a 2.2% drop in sales last month compared with a year ago, impacted by wintry weather and the early Easter.